Georgia: Council approves €45 million in financial assistance

On 12 April 2018, the Council adopted a decision providing up to €45 million in macro-financial assistance to Georgia.

The assistance will help cover Georgia's financing needs, supporting economic stabilisation and its agenda for structural reforms.

Georgia's economy is considered to be vulnerable due to a large current account deficit and high external debt, whilst its foreign reserves have become inadequate.

Macro-financial assistance is a form or financial aid extended by the EU uses to partner countries with balance of payments difficulties. It is only available to countries benefiting from support from the IMF. This is the third operation for Georgia since the country's military conflict with Russia in August 2008.

The EU's first two macro-financial assistance operations, amounting to €46 million each, were pledged at an international donors' conference in October 2008. The EU also provides assistance under its neighbourhood policy.

Georgia joined the EU's Eastern Partnership in 2009. An EU-Georgia association agreement, which provides for the gradual introduction of free trade provisions, entered into force on 1 July 2016.